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Sustainability Report Sustainability Report 2009

Through its various businesses, the Kobe Steel Group contributes to the development of society and to the preservation of the global environment. To give just one example, we develop new, energy-efficient technologies and products that reduce CO2 emissions. All Group employees pursue business activities that take the environment into account. Offering diverse products and services, we operate in harmony with communities both locally and internationally. In this report, we'll introduce some of the unique activities that create a mutually beneficial relationship between the Kobe Steel Group, the earth, and society.

Table of Contents
Message from the President
Overview of the Kobe Steel Group
Feature: Tapping the Potential of Underutilized Resources
1. ITmk3 Ironmaking Technology
2. Upgraded Brown Coal
Corporate Social Responsibility and Corporate Governance
Strengthening Compliance
Social Report
Highlights on Society
Contributing to Society
Relations with Customers and Business Partners
Relations with Shareholders and Investors
Creating an Attractive Working Environment
Disaster Prevention Activities
Environmental Report
Eco Highlights
Policy and Framework for Environmental Management
Countermeasures for Air Emission Problem at Steelworks
Material Balance
Medium-Term Environmental Targets, Results and Evaluation
Measures Against Global Warming
Resource Recycling Measures
Proper Control of Chemical Substances
Reducing the Environmental Burden
Environmental Accounting
Products, Technologies and Services to Benefit the Environment
Contributing to the Environment through R&D
Disclosure of Environmental Information
Cooperation with the Local Community
Promotion of Employee Initiatives
Thorough risk management
Emission Data of Production Facilities

Reader Evaluations
Third-Party Comment and Editorial Postscript

The Kobe Steel Group has created a new logo with the aim of disseminating an environmental image and raising the environmental consciousness of employees. The freehand drawing of a leaf expresses the natural and gentle image of fresh green leaves on trees; the arrow and the word ECOWAY, used in combination with the leaf, symbolize our commitment to proceeding steadily toward becoming an advanced environmental corporate group.

Editorial Policy for the 2009 Edition
This report was created by the Report Production Subcommittee under the CSR Committee, in consultation with all of the divisions and companies concerned. The content was selected, written and edited with an emphasis on materiality, highlighting the matters of greatest concern to stakeholders. In the opening section of this year's report, we have included a feature on the Kobe Steel Group's proprietary technologies and businesses that are dedicated to making effective use of untapped resources.

In addition to the usual report content, we have included in the section entitled "Strengthening Compliance" a discussion of Kobe Steel's inappropriate expenditures in support of local politicians. We also continue to provide a progress report on the countermeasures we have taken in response to the air emission incidents that occurred in fiscal 2006.

This report was formulated with reference to the following works: the GRI Guidelines, 3rd Edition; the Guidelines for Environmental Reporting, 2007 Edition; and a PR paper on corporate evaluation and business continuity published on August 1, 2005 by the Working Group of the Central Disaster Prevention Council.

Period and Scope Covered
The Sustainability Report 2009 presents the Kobe Steel Group's achievements in environmental protection and community activities in fiscal 2008 (April 1, 2008 to March 31, 2009). Some data from previous years are also included. The report includes the Group's basic stance on environmental protection and social contributions. It also describes past, current and future activities.